Name of the candidate: Chaitanya Bhansali

Problem Statement(s)

• A major beverage manufacturer is negotiating with the Indian government

to sell its products in India.
• Indian government demands that
 the manufacturer sell only made-in-India products (i.e. manufacturer can’t
import from its international locations).
 the manufacturer open bottling plants in India.

Assumptions (self-considered)
• The beverage market in India is showing favorable signs of growth.
• The manufacturer is concerned with market share initially and then will
concentrate on profits.
• The manufacturer is in the stage of deciding which product categories
(alcoholic/non-alcoholic, fizzy/non-fizzy, juice) they can enter into.
• The manufacturer is in the stage of considering the options of
manufacturing bottles on its own or outsource it.
• Since the problem statement reads that the manufacturer is a ‘major’
player, it is backed up with decent financial resources.(this doesn’t mean it
will be foolishly spending money)
Issue/Factor 1: Product Portfolio

• The company has decided that it will enter an emerging market

(India) to capitalize on the growing consumer demand because of
possibly a growing GDP/capita (disposable income) of Indian
consumers.
• The company can conduct a product portfolio analysis with the help
of various market research methods like surveys, test marketing,
focus groups etc. with the help of tools like conjoint analysis, diffusion
modeling, and validate it with BCG matrix (divide the portfolio into
star, cash cows, pets and unknown products), Perceptual Mapping,
Five Forces Analysis(as different products would have different threats
associated) and Value Chain Analysis for long-term company success.
This can make company focus on important decisions to be made on a
priority basis such as which products to concentrate on for a faster
ROI, and when to adjust its product portfolio with respect to local
taste on a timely basis.
• Every analysis should be considered in conjunction with the historical
trends for the Indian consumer and adjusted for the future
(exponential smoothing can be considered during forecasting
exercise)
Factor/Issue 2 : Pricing

• There are four major pricing methods which can be employed

by the manufacturer in general:
a) Competitive Analysis – Competitive prices, Competitors’ prices
compared to ours, substitutions’ prices and consumer buying
habits.
b) Cost-plus pricing – COGS+mark up, considering breakeven
point and size of the mark up (profit margin).
c) Price-based costing(value-based pricing) – customers
willingness to pay, product’s worth compared to other similar
products, supply and demand
d) Company’s Objective(s) – profits, revenue, market share etc.

• Since the assumption states that the manufacturer wants to

grab a significant